The demise of Democrats' jobs-agenda legislation means that unemployment benefits will phase out for more than 200,000 people a week. Governors who had counted on fresh federal aid will now have to consider more budget cuts, tax increases and layoffs of state workers. Full story
The diminishing chances that Congress will extend financial aid to recession-wracked states darkened Pennsylvania's already gloomy budget picture Thursday as budget talks between Gov. Ed Rendell and Republican lawmakers slowed to a standstill. Full story
After 34 years, the Reading is Fundamental (RIF) program could lose all of its federal funding because of a change in the way money to fight illiteracy is allocated. NBC's Brian Williams reports.